Vinegar broke the depostis down real good, so I am certain it is mineral deposits from water in the fuel. Cleaned everything up real good. Waiting on parts to get it all back together. Ill let you know how it goes.
Luckily, High Flow Fuel sells aftermarket fuel pumps for $70. If I had to pay $500 for a new Merc fuel pump, Id probably leave this one in there until it croaked. Few reasons I am changing it: the resistance is off spec, I have heard an intermittent whine from the engine and I think its the fuel pump, running against a blocked output like that can't be good for longevity, and lastly, I don't want to have to get back into the VST anytime soon!!!
Cool way that I checked my fuel pressure regulator: I put my air gun to 60 psi and put it into the fuel input side of the regulator. When I let the air go through you could hear the valve squeal off of its seat, and as the pressure dropped down to around 40-45psi the seat closed and air didn't make it past the valve. No reason to spend $150 on a regulator that is working fine!